Indonesia Needs Rp2,780 Trillion in Investment for Electricity until 2034

Based on the latest Electricity Supply Business Plan (RUPTL), Indonesia requires Rp2,780 trillion in investment for electricity projects during the 2025-2034 period.

The details of the annual investment needs are shown in the graph.

This investment is needed to build power plant, transmission, substation, and distribution infrastructure that will be developed by Perusahaan Listrik Negara (PLN) and private companies.

Each year, investment is needed in 5 sectors: interest during construction (IDC), distribution, transmission, PLN power plants, and private power plants or independent power producers (IPP).

In 2025, for example, the estimated investment needs are Rp255.2 trillion, with details as follows:

• IPP Power Plants: Rp114 trillion
• PLN Power Plants: Rp72.4 trillion
• Transmission: Rp43.2 trillion
• Distribution: Rp15.1 trillion
• IDC: Rp10.5 trillion

"To develop the infrastructure planned in the 2025-2034 RUPTL, an average investment of Rp278 trillion per year is projected to be needed, both by PLN and private companies," as quoted from the 2025-2034 RUPTL.

In the next ten years, the estimated average investment needs per sector are as follows:

• IPP Power Plants: Rp156.6 trillion/year
• PLN Power Plants: Rp56.7 trillion/year
• Transmission: Rp39.2 trillion/year
• Distribution: Rp17.3 trillion/year
• IDC: Rp8.1 trillion/year

The high investment needs in the 2025-2034 RUPTL follow the need for power plant development for the Accelerated Renewable Energy Development (ARED) scenario.

ARED is an accelerated energy transition scenario, containing a target for the development of new and renewable energy power plants that is larger than the "business as usual" scenario.

PLN's investment needs will be met from various funding sources: internal funds, loans, and state capital participation (PMN).

Internal funds come from operating profits and depreciation of fixed assets. Loans can be foreign loans, government loans through investment fund accounts, national and international bonds, other commercial bank loans, and foreign grants.

Then, PMN is carried out through the budgeting process in the State Revenue and Expenditure Budget (APBN).